LONDON (Reuters] – On Friday, the British pound was lower against the U.S. Dollar and Euro after consumer confidence fell to its lowest point in 16 months. This follows a sudden drop in retail sales.

The Office for National Statistics reported that February’s retail sales were 0.3% lower than January, due to stormy weather preventing some shoppers.

GfK’s survey revealed that British consumers were less confident than they had been since November 2020. This was due to high interest rates, inflation fears, and the conflict in Ukraine.

Slowly, the pound traded 0.1% less against the dollar at $1.3174.

Sterling fell 0.3% against the euro to 83.68pence, the weakest level since Monday. However, it did make a small recovery.

“Sterling’s limited reaction to the data is indicative of the limited volatility in the pair around current levels,” analysts at Monex Europe said, highlighting that volatility had “dried up” following Wednesday’s budget announcement.

Rishi Sunak, the British finance minister announced Wednesday a reduction in fuel duty and a relaxation of some payroll taxes. This was to alleviate a serious cost of living squeeze amid slowing economic growth.